Contract of Carriage
What is a Contract of Carriage?
A contract of carriage is a negotiated contract not subject to a tariff that is between the carrier and shipper for the transportation of cargo.
The written contract between a shipper and carrier sets forth the terms, conditions, and obligations of each party with respect to the carriage of the particular goods. Contracted carriers may choose if and when to provide service.
Common types of contracts of carriage include the following:
- Bill of Lading
- Sea waybill
- Air waybill
- Charter party
Why does the contract of carriage matter?
The contract sets out who is liable for loss or damage, how much the carrier must pay, and the time limits for filing a claim. Many of these terms follow international conventions that vary by mode, such as the Hague-Visby Rules for ocean freight and the Montreal Convention for air freight.
Read the liability and claims clauses before you ship, particularly for high-value cargo. If the standard limits don't cover your goods' value, you can declare a higher value or buy cargo insurance.
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